Cholamandalam Investment and Finance Company Limited

CHOLAFINNon Banking Financial Company (NBFC)
1648.90+0.00 (+0.00%)
As on 29 Jan 2026, 10:37 amMarket Closed

Fundamental Score

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Cholamandalam Investment and Finance Company Limited Share Price Live NSE/BSE

No data
High
0.00
Low
0.00
Volume
0
Change
+0.00%

Profitability Metrics

Excellent

Return on Equity

19.71%
Poor

Return on Capital Employed

10.34%
Excellent

Operating Profit Margin (5Y)

70.99%
Poor

Dividend Yield

0.12%

Valuation Metrics

Poor

Price to Earnings

31.32x

Market Capitalization

1.45L (Cr)

Industry P/E

22.03x

Growth Metrics

Excellent

YoY Quarterly Profit Growth

19.82%
Excellent

YoY Quarterly Sales Growth

19.76%
Excellent

Sales Growth (5Y)

24.29%
Excellent

EPS Growth (5Y)

31.57%
Excellent

Profit Growth (5Y)

32.25%

Financial Health

Poor

Debt to Equity

7.23x
Poor

Interest Coverage

1.46x
Poor

Free Cash Flow (5Y)

-1.11L (Cr)

Ownership Structure

Average

Promoter Holding

49.88%
Excellent

FII Holding

26.85%
Good

DII Holding

17.27%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
49.88%
Promoter Holding
1.45L (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of CHOLAFIN across key market metrics for learning purposes.

Positive Indicators

8 factors identified

Strong Return on Equity (19.71%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Strong Operating Margins (70.99%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Strong Revenue Growth (19.76%)

Observation: Healthy sales growth indicates market demand and execution capability.

Analysis: Revenue growth >15% suggests strong market position and growth potential. This indicates business expansion success.

Consistent Growth Track Record (24.29% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Excellent EPS Growth (31.57% CAGR)

Observation: Outstanding 5-year earnings per share compound growth.

Analysis: EPS CAGR >15% indicates strong wealth creation potential and effective capital allocation over extended periods.

Strong Profit Growth Track Record (32.25% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Strong Institutional Confidence (FII+DII: 44.12%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

6 factors identified

Elevated Debt Levels (D/E: 7.23)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Weak Interest Coverage (1.46x)

Observation: Limited ability to service debt obligations from earnings.

Analysis: Low interest coverage raises concerns about financial stability. Monitor cash flow and debt reduction plans.

Negative Free Cash Flow (₹-111191.08 Cr over 5Y)

Observation: Cash outflows exceed inflows, indicating capital intensity or working capital issues.

Analysis: Negative FCF requires analysis of capital expenditure cycle and working capital management efficiency.

High Debt-to-Equity Ratio

Observation: Elevated financial risk due to high leverage.

Analysis: High debt levels may strain cash flows and increase financial risk during economic downturns.

Very High Debt Levels

Observation: Excessive leverage may strain cash flows.

Analysis: Debt-to-equity above 2.0 indicates potential financial distress risk.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

Financial Statements

Comprehensive financial data for Cholamandalam Investment and Finance Company Limited

About CHOLAFIN

Business Overview

Cholamandalam Investment and Finance Company Limited, operates as a non-banking finance company in India. The company operates through Vehicle Finance, Loan Against Property, Home Loans, and Other Loans segments. It offers loans for commercial vehicles, passenger vehicles, two- and three- wheelers, and tractors, as well as construction equipment. The company also provides secured loans against property, and home and SME loans, as well as consumer and small enterprise loans, including personal loans, professional loans, and business loans to salaried, self-employed professional and non-professional customers, and micro and small businesses. In addition, it offers gold loans, consumer durable loans, corporate insurance agencies, stockbroking and depository participants, offline payment aggregator, home extension, balance transfer of existing loans, supply chain finance, and secured term loans. Further, the company provides dealer portal services under the Gaadi Bazaar brand, which act as a hub for dealers in listing vehicles, generating leads, and applying for loans and trade advances. Additionally, it operates Payswiff, an omnichannel payment transaction solution that lets business owners accept payments from their customers in-store, at-home deliveries, online and on-the-go using mPOS, and POS solutions. The company was incorporated in 1978 and is headquartered in Chennai, India.

Company Details

Symbol:CHOLAFIN
Industry:Non Banking Financial Company (NBFC)
Sector:Non Banking Financial Company (NBFC)

Key Leadership

Mr. Murugappan Vellayan Subbiah
Executive Chairman
Mr. Ravindra Kumar Kundu
MD, President of Business, Head of Vehicle Finance & Executive Director
Mr. D. Arul Selvan
President & CFO

Corporate Events

Upcoming
Earnings Date
2026-02-06
Recent
Ex-Dividend Date
2025-07-24

CHOLAFIN Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)19.71%
Return on Capital Employed10.34%
Operating Profit Margin (5Y)70.99%
Debt to Equity Ratio7.23
Interest Coverage Ratio1.46

Growth & Valuation

Sales Growth (5Y)24.29%
Profit Growth (5Y)32.25%
EPS Growth (5Y)31.57%
YoY Quarterly Profit Growth19.82%
YoY Quarterly Sales Growth19.76%

Frequently Asked Questions

What is the current price of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?

As of 29 Jan 2026, 10:37 am IST, Cholamandalam Investment and Finance Company Limited (CHOLAFIN) is currently trading at ₹1648.90. The stock has a market capitalization of ₹1.45L (Cr).

Is CHOLAFIN share price Overvalued or Undervalued?

CHOLAFIN is currently trading at a P/E ratio of 31.32x, compared to the industry average of 22.03x. Based on this relative valuation, the stock appears to be Overvalued against its sector peers.

What factors affect the Cholamandalam Investment and Finance Company Limited share price?

Key factors influencing CHOLAFIN's price include its quarterly earnings growth (Sales Growth: 19.76%), raw material costs, government infrastructure spending, and institutional flows (FII/DII holding).

Is Cholamandalam Investment and Finance Company Limited a good stock for long-term investment?

Cholamandalam Investment and Finance Company Limited shows a 5-year Profit Growth of 32.25% and an ROE of 19.71%. Long-term investors should consider these fundamentals alongside the debt-to-equity ratio of 7.23 before investing.

How does Cholamandalam Investment and Finance Company Limited compare with its industry peers?

Cholamandalam Investment and Finance Company Limited competes with major peers in the Non Banking Financial Company (NBFC). Investors should compare CHOLAFIN's P/E of 31.32x and ROE of 19.71% against the industry averages to determine its competitive standing.

What is the P/E ratio of CHOLAFIN and what does it mean?

CHOLAFIN has a P/E ratio of 31.32x compared to the industry average of 22.03x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹31 for every ₹1 of annual earnings.

How is CHOLAFIN performing according to Bull Run's analysis?

CHOLAFIN has a Bull Run fundamental score of 62.5/100, which indicates moderate strength with some areas for improvement. This comprehensive rating is based on 15+ financial parameters including profitability, growth metrics, and valuation ratios.

What sector and industry does CHOLAFIN belong to?

CHOLAFIN operates in the Non Banking Financial Company (NBFC) industry. This classification helps understand the competitive landscape and sector-specific trends affecting Cholamandalam Investment and Finance Company Limited.

What is Return on Equity (ROE) and why is it important for CHOLAFIN?

CHOLAFIN has an ROE of 19.71%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Cholamandalam Investment and Finance Company Limited generates profits from shareholders' equity.

How is CHOLAFIN's debt-to-equity ratio and what does it indicate?

CHOLAFIN has a debt-to-equity ratio of 7.23, which indicates high leverage that increases financial risk. A ratio below 1.0 generally indicates conservative financing.

What is CHOLAFIN's dividend yield and is it a good dividend stock?

CHOLAFIN offers a dividend yield of 0.12%, which means you receive ₹0.12 annual dividend for every ₹100 invested.

How has CHOLAFIN grown over the past 5 years?

CHOLAFIN has achieved 5-year growth rates of: Sales Growth 24.29%, Profit Growth 32.25%, and EPS Growth 31.57%.

What is the promoter holding in CHOLAFIN and why does it matter?

Promoters hold 49.88% of CHOLAFIN shares, with 0.00% of promoter shares pledged. High promoter holding often indicates strong management confidence.

What is CHOLAFIN's market capitalization category?

CHOLAFIN has a market capitalization of ₹145499 crores, placing it in the Large-cap category.

How volatile is CHOLAFIN stock?

CHOLAFIN has a beta of N/A. A beta > 1 suggests the stock is more volatile than the market, while a beta < 1 suggests it is less volatile.

What is the 52-week high and low for CHOLAFIN?

CHOLAFIN has a 52-week high of ₹N/A and low of ₹N/A.

What is CHOLAFIN's operating profit margin trend?

CHOLAFIN has a 5-year average Operating Profit Margin (OPM) of 70.99%, indicating the company's operational efficiency.

How is CHOLAFIN's quarterly performance?

Recent quarterly performance shows YoY Sales Growth of 19.76% and YoY Profit Growth of 19.82%.

What is the institutional holding pattern in CHOLAFIN?

CHOLAFIN has FII holding of 26.85% and DII holding of 17.27%. Significant institutional holding often suggests professional confidence in the stock.